The right mortgage lender recommendation can drastically improve borrower satisfaction
How well do homebuyers fare when they are referred to a mortgage lender by their real estate agents? According to research, much better than on their own. According to the National Borrower Satisfaction Index from consulting firm Stratmor Group, buyers who followed their agent’s recommendation in picking a lender — roughly 19 percent of the sample of 10,000 or so borrowers — scored a “relatively high” and “very good” index score of 91.
Compare this to a score of 82 when borrowers chose their own lenders because of financial incentives. A score of 82 is considered “mediocre.” Borrowers tend to be the most satisfied when the agent refers a lender that makes them feel “comfortable”—someone that engages the buyer early and makes them feel reassured throughout the entire home buying process.
Agent-referred mortgage lenders improve homebuyer satisfaction
Homebuyers with significant direction from their agent — 31 percent of the sample — reported a “very high” satisfaction rate of 95. According to Stratmor’s team: “Good loan originators result in highly satisfied borrowers, who are also more likely to comment favorably on social media, thereby enhancing a lender’s reputation, which attracts more borrowers.”
The message is clear: if the agent is going to recommend the loan officer, because, after all, it is the person who gets the “deal done.”
Connect your buyers with the best loan originators using the MLS
The MLS is the lifeblood of the real estate business. The United States is the only place in the world with this system of cooperation among competing brokerages. Generally, most lenders completely overlook the MLS as a source of introductions to new home buyers – because it is, after all, a tool exclusively for real estate agents.
Agent-referred mortgage lenders help you close faster
RatePlug has changed this dynamic by redefining agent-lender cooperation on the MLS platform. With RatePlug, lenders connect with their agents. Agents then allow lenders to post their rates and products on their MLS listings.
By connecting their most trusted lenders into their MLS listings, agents protect their buyers and ensure that the lenders that are most capable of “getting the deal done” are introduced early to homebuyers as they are searching for a home.
Introduce agent-referred mortgage lenders earlier
An early introduction matters. A study completed at the Keller Center for Research at Baylor University found that prospective home buyers often make emotional and ill-informed decisions about mortgage products once they have actively engaged in purchasing a home. The study says that the buyer is often overwhelmed by the home selection process, which leads to less attention to financing detail after a contract is signed and increases the likelihood of a future home delinquency.
RatePlug enabled listings display a lender’s current products and rates in an interactive calculator that allows the homebuyer to model multiple scenarios and understand the total cost (including PITI) of owning the property. Buyers are better qualified because they understand the monthly cost to own. Agents benefit because RatePlug-enabled listings close 15% faster than listings that do not use RatePlug.
RatePlug is the #1 MLS integrated technology platform that connects agents, home buyers, and loan originators. RatePlug is included with your MLS membership – no credit card needed. Protect your time and effort. Agent-referred mortgage lenders help you close faster and protect your commissions against failed financing. Unlike typical mortgage payment calculators, RatePlug displays live interactive mortgage rates on the MLS display and leverages the full property detail available within the MLS to calculate monthly affordability.
When agents connect with lenders to participate in RatePlug, the result is the 4 bedroom 2.5 bath home isn’t only $225,000. It’s $1,375.87 per month including principal, interest, taxes, and HOA. When your home-buyers say “we can afford that” they are more likely to make an offer. Explore RatePlug’s features for agents.